Credit Suisse

BMW reopened the European benchmark investment grade corporate bond new issue market on Tuesday with a punchy €1.75bn deal that sent a strong signal: spreads — and especially yields — for corporate issuers are set for a very tight autumn. BMW paid a coupon of just 0.5% on its €1bn four year tranche. But despite these pitifully thin yields, investors are eager to buy.

The additional tier one deal pipeline may have shuddered back into life earlier than expected this week as two banks announced roadshows following a rally inspired by inspired by dovish comments from European Central Bank president Mario Draghi. But volatility has since set back into the market and looks ready to test the asset class’s hardiness, writes Graham Bippart.

Credit Suisse has hired a managing director to its EMEA leveraged finance and sponsors group in London.

Bumi Armada’s biggest shareholder, Objektif Bersatu, has raised MR636.4m ($202.1m) by selling a 7% stake in the Malaysian company. Launched on the back of news of an upcoming rights issue, the block came with a fixed price to ensure the final deal size could increase with demand.

The names have emerged of the 16 lenders that have signed up to the $1bn dual tranche loan from mobile phone company Xiaomi ahead of its launch into general syndication next week. Including the three original bookrunners and mandated lead arrangers, the total number of banks at the top level could swell to 20 as one more lender processes its approval.

Aigües de Barcelona, which provides water and sewerage services to the Catalonian capital, has mandated Credit Suisse and local firm Trea Capital Partners for a possible €200m bond.

The sovereign, supranational and agency sector shot out of its summer snooze on Wednesday, as the first benchmark sized deals in more than three weeks drew bulging books and bankers tipped more mandates to hit screens later in the day. Investors with cash to put to work, a lower level of upcoming SSA supply than the last few years and unexpectedly dovish comments by the European Central Bank president late last week were all contributing to a heavily bid market, said SSA bankers.

Swiss Re and UniCredit are looking to be the first out of the door in the post-summer subordinated debt market, taking advantage of the recent rally in credit after European Central Bank president Mario Draghi’s comments earlier in the week gave investors confidence that the bank would enhance its measures to boost weak eurozone inflation.

BMW reopened the European benchmark investment grade corporate bond new issue market today with a punchy €1.75bn deal that proved one thing and suggested another. The market is fully open for business after the summer – that is certain. And the signs are that spreads – and especially yields – for corporate issuers are set for a very tight autumn.

Southeast Asia’s largest e-payment company, MOL Global, started the premarketing process for a $300m Nasdaq IPO on August 25 as it looks to become the first Malaysian firm to list in the US.

Credit Suisse and Deutsche Bank each tested the depth of the senior unsecured primary market this week with taps of existing bonds, with both finding enough demand to increase their respective deal sizes to benchmark size.

Malaysian healthcare provider Qualitas Medical Group is looking to list its shares in the country before the end of the year, tapping two banks to lead its IPO.